The beginning of 2014 has seen a variety of legislation at the state and local levels that would regulate and/or tax electronic cigarettes.
State Regulatory
Arbitration Panel Rules Against State of New Mexico
Posted in Significant Cases, State Regulatory
As mentioned in a previous blog post, on September 11, 2013, a three-member federal arbitration panel decided the on-going dispute among three participating manufacturers (“PMs”) and 15 states involving the 2003 payment obligations under the Master Settlement Agreement (“MSA”).
Arbitration Panel Rules in Favor of New York State, Finds No Obligation to Collect Escrow for Tribal Sales
Posted in State Regulatory
As mentioned in a previous blog post, on September 11, 2013, a three-member federal arbitration panel settled the on-going dispute among three participating manufacturers (“PMs”) and 15 states involving the 2003 payment obligations under the Master Settlement Agreement (“MSA”).
New York is one of the states that the arbitrators ruled in favor of in denying the PMs a credit under the non-participating manufacturer (“NPM”) Adjustment. The arbitration panel concluded that “the MSA’s first condition for application of the 2003 NPM Adjustment was satisfied: the PMS had suffered a ‘Market Share Loss’ for 2003.” In particular, the independent auditor calculated approximately an 8 percent market-share shift from the PMs to the NPMs from 1997-2003. New York (nor any of the other 14 states) disputed the auditor’s finding that the PMs suffered a market share loss in 2003.
Idaho Supreme Court Upholds State Authority Over Tribal Distributor
Posted in Significant Cases, State Regulatory
In a blog post on January 26, 2013, we discussed a case pending before the Idaho Supreme Court. The State of Idaho and the Idaho State Tax Commission sued Native Wholesale Supply Company, a native-owned tobacco distributor. Native Wholesale sold cigarettes that were not listed in the Idaho Directory to a native-owned business on an Idaho reservation.
Texas Enacts NPM Fee
Posted in Legislation, State Regulatory
Texas enacted a fee on certain tobacco products manufactured by non-participating tobacco products manufacturers (“NPM”), that goes into effect on September 1, 2013. Tex. H.B. 3536 passed the legislature on June 14, 2013. The fee is imposed on the sale, use, consumption, or distribution in Texas of NPM cigarettes and…
Tennessee Supreme Court Finds No Jurisdiction Over Foreign Manufacturer
Posted in Significant Cases, State Regulatory
In March 2013, the Supreme Court of Tennessee held, in a 3-2 decision, that the State of Tennessee lacks personal jurisdiction over NV Sumatra Tobacco Trading Company, an Indonesian cigarette manufacturer.
New York City Prevails in CCTA Claim Against Tribal Merchant
Posted in Significant Cases, State Regulatory
Last month, the United States District Court for the Eastern District of New York held that three Indian smoke shops are required to pay over $10 million in taxes to New York City for trafficking untaxed cigarettes.
Oklahoma Bill Would Tax and Regulate E-Cigarettes
Posted in Legislation, State Regulatory
A bill that would tax and impose additional regulations on electronic cigarettes is moving through the Oklahoma legislature. Senate Bill 802 has already cleared the Oklahoma Senate and is pending in the Oklahoma House.
New York State Pursues CCTA Claims Against Cigarette Manufacturer and Distributor
Posted in Significant Cases, State Regulatory
On March 4, 2013, the Office of the New York Attorney General filed a lawsuit against Grand River Enterprises Six Nations, Ltd., Native Wholesale Supply Company Inc., Jerry Montour, Jr. and Kenneth Hill in the United States District Court for the Eastern District of New York. Grand River, a Canadian-based manufacturer, sells cigarettes throughout the United States. Native Wholesale Supply, a New York-based distributor, purchases Grand River cigarettes for resale in New York. The Plaintiff’s four-count complaint alleges violations of: (1) the Contraband Cigarette Trafficking Act; (2) the PACT Act; and (3) New York Tax Law.
20 Years of FMLA & Regulatory Compliance Remains More of a Challenge Than Ever
Posted in Legislation, State Regulatory
REMINDER: All employers covered under the Family and Medical Leave Act (”FMLA”) were mandated by the U.S. Department of Labor (DOL) to display the new FMLA poster by March 8, 2013.
Background: Twenty years ago, President Bill Clinton signed the FMLA into law. The law, requiring all employers with 50 or more employees to provide job-protected and unpaid leave for qualified medical and family reasons, ranks as one of the most insidious and complicated federal statutes for employers. Instead of using the FMLA’s 20th anniversary as a catalyst to provide FMLA clarifications, the DOL instead, issued additional federal regulations that implement statutory changes ensuring the FMLA will continue to be one of the biggest compliance headaches for covered employers.
Poster Revisions: The poster revisions include